Question

dan has agi of $50,000 and paid the following taxes during this tax year. state income tax withholding $ 1,375 state income tax estimated payments 800 federal income tax withholding 3,175 social security tax withheld from wages 2,000 state excise tax on liquor 450 automobile license (based on the car's weight) 325 state sales tax paid 525 calculate how much dan can deduct for taxes as an itemized deduction this year.

Answer 1

$2,175 dan can deduct for taxes as an itemized deduction this year.

What is a tax?

A tax is a mandatory financial charge or other type of levy placed on a taxpayer (an individual or legal entity) by an administrative body to pay for various public expenditures and administrative costs.

The following chart shows how the itemized deduction was calculated:

State income tax withholding and anticipated payments for state income tax

= $1,375 + $800

= $2,175

We do not deduct Social Security tax, state excise tax on alcohol, or federal income tax withholding because these taxes are taxable.

Additionally, the automobile license is dependent on the weight of the vehicle rather than its market worth. Therefore, this wouldn't be regarded.

Additionally, we might choose among the state income tax or the sales tax. So, in the calculating section, we include the state income tax.

know more about deduction of taxes from the given link

brainly.com/question/13459204

#SPJ4